Eddie Caine

Introduction to Telework

Will It Work for You?

September 15, 2009

Telework Program Benefits & Purpose

Telework: Moving the work to the worker

– instead of the worker to the work.

2

Information

Age

Industrial

Revolution

Agriculture

Revolution

Celebrating 20 Years of Telework

• Telecommuting pilot with the state of Arizona and AT&T

• Since 1993, telework has grown more than 1,000%*

• Today 28% of local employers claim formal telework

• Why so few? What has slowed its progress?

• A constant among sustainable success:

– Build formal elements and management support

– Build a common expectation among participants

– Manage the program

– Measure and evaluate the impacts

3*Source: WestGroup Research, 2007 Transportation Demand Management Study

Some National Success Stories

4

According to a compensation survey of 1,400 CFOs conducted by Robert Half International

– 46% said telecommuting is second only to salary as the best way to attract top talent

– 33% said telecommuting was the top draw

Teleworkers produce 43% more business than employees at the office

International Successes

5

Productivity increased 31% among the 9,000 telecommuters in British Telecom's work force of 80,000

Claims that telecommuters are 20% to 25% more productive than office workers

Reports savings of $550 million annually –$3,000 per office (through eliminating or consolidating space)

And More Facts…

About 25% of IBM’s 320,000 workers worldwide telecommute, saving Big Blue some $700 million in real estate costs

The costs of just outfitting and equipping an employee for telecommuting can be made up in the first year with 3.5 days away from the office

6

Interesting Side Notes:

More than 70% of U.S. companies offer full-or part-time telecommuting to employees.

Polled more than 1,000 users from 10 different countries to find that:

12% of people who work out of the office regularly connect to a neighbor’s wireless network when working at home.

The Center for Democracy and Technology promotes democratic values and

constitutional liberties in the digital age.7

Performance-Based Solutions

See: ValleyMetro.org/telework

8

Increased Productivity (improved efficiencies)

Improved workplace flexibility

Improved recruitment opportunities

Reduced turnover and

absenteeism

Continuity of operations (emergency preparedness)

Improved employee

morale

Downloads Telework Benefits by Employers

Employing 50 teleworkers can add more

than $700,000 to a company’s bottom line.

Assumptions:

– 50 employees teleworking

– $40,000 average salary + 30% fringe benefits

– Employee cost of turnover at 93% of salary

– Telework an average of two days per week

– 8% employee turnover – reduced by 75%

– Parking space leased = $560 per year/space

9

Real Case Study:

Increased Productivity $499,200

Improved Attendance $19,968

Reduced Turnover $139,276

Real Estate Savings $46,080

Leased Parking Savings $11,059

Total Savings $715,583

Formal Program = Bottom Line

See: ValleyMetro.org/telework

10

Annual $ benefits realized

by employer

Employer Tools Cost Benefit Analysis

Barriers to Telework

Why don’t more workers steer clear of commuting?

11

• Lack of top-level support for the concept

• Management skills or discomfort with telework

• Feel the need for “face time” (non-verbal communication)

• Distractions and/or lack of self-discipline

• Personal and professional profiles are not suitable

• A need to separate work and personal life

• Perceived equity and fairness concerns

• Insufficient work environments

Telework – What it is Not

• A solution in search of a problem

• For all employees

• A universally applied employee benefit

• A substitute for dependent care

• A “Right” or “Entitlement”

• Always full-time, high-tech or at home

• Simply putting equipment and phone lines in

employees’ homes

• Losing control

12

Five Primary Keys for Success

1. CEO buy-in

2. Formalized program

3. Training and education

4. Strong administrative support

5. Evaluate impacts to demonstrate “your”

organization’s ROI

13

CEO buy-in Formalized

program

Training and

education

Strong administrative

support

Program evaluation

Why Do Employees Want to Telework?

Desire to telecommute is triggered by:

• Accomplish more work in less time

• Avoid commute-related stress

• Enjoy more personal time

• Attend to family needs

• Reduce commuting cost

Source: WestGroup Research 2006 Employer Telecommuting Study

14

Why Do Organizations Allow Telework?

• Individual requests

• Air quality, ADA legislation and FMLA

• Recruitment advantages

• Tap the employee’s ability to be more creative

• Reduced real estate and overhead (down spacing)

15

Source: WestGroup Research 2006 Employer Telecommuting Study

“We cannot continue doing things the same way, and expect different results.”

Why Telework – Why Now?

• We are being asked to do more with less

• Now more than 33 million Americans telework*

• Environmental concerns (carbon footprint)

• Retain our most valuable assets

• Expand your recruiting pool (organizations

competing for the best employees are offering

flexible work options)

• Best utilize technology (cheaper-better-faster)

19

*WorldatWork “2009 Telework Trendlines” study

Telework Impacts in 2008

Valley wide employers ranked their telework

program as favorable 69% of the time.

• Improves employee morale (78%)

• Increases productivity (76%)

• Improves employee work/life balance (76%)

• Aids with employee retention (76%)

Source: Telework Focus Groups – WestGroup Market Research 2008

17

30 Statements by Employers

18

• Reduced:

• Overhead costs

• Office churn

• Overtime hours

• Improved:

• Employee recruitment

• Overall cost containment

• Increased or improved:

• Productivity

• Employee effectiveness

• Helped employees balance their work and personal lifeFor more go to www.ValleyMetro.org/telework

Who Is Offering Telework• AT&T• American Express• Arizona Public Service• Avnet, Inc.• Bank of America• Blue Cross & Blue Shield of AZ• Boeing Co.• Compaq Computer• Federal, state and local

governments• General Electric• GTE• Hewlett-Packard• Honeywell• IBM

• Intel Corporation• International Blue Cross• JP Morgan Chase• Kaiser Permanente• Mayo Clinic • Ritz-Carlton • Travelers Insurance• TRW• U-Haul International• University of California• Valley Metro/RPTA• Verizon• Wells Fargo & Company• and many more . . .

19

September 22nd, 2:00-2:45 pm:

Program Implementation. Hear critical steps on

developing sustainable telework initiatives.

September 29th, 2:00-2:45pm:

Training and Expectations. Help ensure that all

employees begin with a common understanding.

October 6th, 2:00-2:45 pm:

Work Environments and Program Evaluation:

Review the design of creative work spaces and

develop effective program outcome measures.

20